Mortgage Payment
Calculator.

Understanding your monthly mortgage payment.

Your monthly mortgage payment is more than just the loan repayment. It includes principal and interest on the loan itself, plus property taxes, homeowners insurance, and potentially PMI and HOA fees. Together, the core components are often called PITI — Principal, Interest, Taxes, and Insurance.

How mortgage amortization works

With a fixed-rate mortgage, your total monthly payment stays the same for the life of the loan, but the split between principal and interest changes each month. In the early years, most of your payment goes toward interest. Over time, a larger share goes toward paying down the principal balance. On a 30-year $320,000 loan at 6.5%, you will pay about $408,000 in interest over the full term — more than the original loan amount.

The impact of your down payment

Your down payment directly affects both your loan amount and whether you pay PMI. Putting down 20% or more eliminates PMI entirely, which can save $100-$300+ per month. If you cannot reach 20%, explore down payment assistance programs that may help bridge the gap. Even a few percentage points more in down payment can meaningfully lower your monthly costs.

15-year vs 30-year: choosing the right term

A 15-year mortgage typically comes with a lower interest rate and saves you hundreds of thousands in total interest, but the monthly payments are significantly higher. A 30-year mortgage gives you lower monthly payments and more financial flexibility. The right choice depends on your budget, goals, and how long you plan to stay in the home.

What is PMI and how to avoid it

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It protects the lender if you default. PMI typically costs 0.3%-1.5% of the loan amount annually. You can request removal once you reach 20% equity, and lenders must automatically cancel it at 22% equity based on the original purchase price.

Getting the best mortgage rate

Even a small difference in your interest rate has a massive impact over 30 years. To get the best rate, aim for a credit score of 740+, make a down payment of at least 20%, shop multiple lenders, and consider buying points. Read our complete guide on how to get a mortgage for a step-by-step walkthrough of the approval process.

Understanding closing costs

Beyond your monthly payment, buyers typically pay 2-5% of the home price in closing costs upfront. These include lender fees, title insurance, appraisal, escrow setup, and prepaid taxes and insurance. With Beycome, buyers get 2% back at closing, which can offset a significant portion of these costs.

How much is a mortgage on a house?

Your monthly payment depends on the home price, down payment, interest rate, and loan term. The table below estimates total monthly payments (including taxes, insurance, and PMI where applicable) for a 30-year fixed mortgage at 6.5% with 15% down.

Estimates assume 30-year fixed at 6.5%, 15% down, 1.1% property tax, $1,500/yr insurance. PMI included for loans with less than 20% down. Actual payments vary by lender, location, and credit score.

What's included in PITI?

Most lenders collect your total monthly housing cost through an escrow account — not just the loan payment itself. PITI stands for the four components of a typical mortgage payment:

• Principal: The portion that reduces your loan balance. Early in the loan, this is a small fraction of your payment — see how amortization shifts the balance over time.
• Interest: The cost of borrowing. On a $320,000 loan at 6.5%, you pay $1,733/month in interest in the first month alone. This decreases each month as your balance drops.
• Taxes: Property taxes are collected monthly (1/12 of your annual bill) and held in escrow. Rates vary widely — from 0.3% in Hawaii to over 2% in New Jersey and Illinois.
• Insurance: Homeowner's insurance protects against damage and liability. Lenders require it. Flood insurance may also be required in certain zones. Average annual cost: $1,500-$3,000.

If your down payment is less than 20%, your lender will also add PMI (private mortgage insurance) to your monthly payment — typically 0.5-1.5% of the loan amount per year. PMI is automatically removed once you reach 20% equity. FHA loans have their own mortgage insurance (MIP) that works differently.

How to lower your mortgage payment

The most effective ways to reduce your monthly payment: increase your down payment (20%+ eliminates PMI), shop for a lower rate (compare at least 3 lenders), choose a longer loan term (30-year vs 15-year trades lower payments for more interest), or consider an ARM if you plan to sell within 5-7 years. And with Beycome's 2% buyer rebate, you can apply $8,000+ directly to your down payment — instantly lowering your loan amount and monthly cost.

Resources.

Everything you need to understand mortgage payments and home financing.

Frequently Asked Questions.